Ted Riley owns a Lexus worth $44,500. He owns a home worth $395,000. He has a checking account with $600 in it and a savings account with $3,900 in it. He has a mutual fund worth $119,000. His personal assets are worth $99,000. He still owes $22,700 on his car and $237,000 on his home, and he has a balance on his credit card of $3,600. What is Ted's net worth

Question

Business

Messiah

4 January, 23:47

Ted Riley owns a Lexus worth $44,500. He owns a home worth $395,000. He has a checking account with $600 in it and a savings account with $3,900 in it. He has a mutual fund worth $119,000. His personal assets are worth $99,000. He still owes $22,700 on his car and $237,000 on his home, and he has a balance on his credit card of $3,600. What is Ted's net worth

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Layla Davies · Answer 1

The Ted's net worth is $398,700

Explanation:

The net worth is also known as equity. It is a difference between total assets minus total liabilities.

Here, we use the accounting equation which is equals to

Total assets = Total liabilities + total equity

where,

Total assets = Lexus worth + home worth + checking account + saving account + mutual funds + personal assets

= $44,500 + $395,000 + $600 + $3,900 + $119,000 + $99,000

= $662,000

And, the total liabilities = Car loan + Home loan + credit card balance

= $22,700 + $237,000 + $3,600

= $263,300

So, the net worth would be equal to

= $662,000 - $263,300

= $398,700

Hence, the Ted's net worth is $398,700